Mexico’s Economic Strain: Tariff Threats and Recession Risks

As Mexico faces the looming threat of a 25% tariff from the U.S., the economy shows signs of strain with a significant drop in foreign direct investment and industrial output. The International Institute of Finance has downgraded Mexico's growth forecast to 0.8%, warning of a potential recession. This episode explores the economic challenges and geopolitical tensions impacting Mexico, and the government's strategies to navigate these turbulent times. Gain insights into the broader implications for U.S.-Mexico trade relations and the potential long-term impacts on Mexico's economic landscape.

Sources:
https://elpais.com/mexico/2025-03-03/menor-inversion-y-actividad-industrial-la-economia-mexicana-muestra-focos-de-alerta-ante-el-muro-arancelario-de-trump.html
https://www.eleconomista.com.mx/economia/iif-reduce-pronostico-pib-mexico-0-8-ve-riesgo-recesion-20250302-748657.html

Outline:
(00:00:00) Introduction
(00:00:41) Lower investment and industrial activity: the Mexican economy shows alert spotlights before Trump's ‘tariff wall’
(00:04:07) IIF reduces GDP prognosis to Mexico to 0.8%; View recession risk